Annual Percentage Rate (APR)

Closing costs are __________. A. always required to be paid before the loan is finalized B. always required to be added onto the home loan C. fees to cover the resources involved in creating a loan D. money given to the borrower from the bank as a bonus

c

The Truth in Lending Act does NOT allow the bank __________. A. to tell the borrower the amount they will pay in interest B. to charge the borrower interest on a loan C. to hide the interest charges a borrower will pay D. to publish interest charges before a lender takes out a loan

c

APR is NOT ___________. A. the annual percentage rate B. the percent you will pay on the loan C. the additional cost they will add to the principal of a loan D. the percent they will refund you after you have paid off a loan

d

The Truth in Lending Act applies to ______________. A. all loans B. only home loans C. only credit card loans D. only auto loans

a

The bank charges a PMI cost when there is ___________________. A. a high risk the borrower will not be able to pay back the loan B. a moderate risk the borrower will not be able to pay the loan C. a small risk the borrower will not be able to pay back the loan D. any mortgage taken

a

The larger the final loan figure is, __________________. A. the more money the borrower will pay in interest B. the less money the borrower will pay in interest C. the more money the bank will pay in interest D. the less money the bank will pay in interest

a

The money it costs to borrow money is called the ______________. A. annual percentage rate B. truth in lending act C. closing costs D. finder's fee

a

APR rates on mortgages are paid ______________. A. to the person who is borrowing the money B. to the bank who is lending the money C. to the government that prints the money D. before the loan is completed

b

If you are buying a house, the APR will NOT include __________. A. points on a mortgage B. interest on your car and credit cards C. PMI costs D. closing costs

b

PMI covers _____________ insurance on a home loan. A. the borrower's B. the bank's C. the state's D. the community's

b